3 ms·

I interpreted the "multiple non-residence ownership taxation" as more of a non-landlord tax. I met a fellow back around 2002 who owned twenty houses out in Ari

I interpreted the "multiple non-residence ownership taxation" as more of a non-landlord tax. I met a fellow back around 2002 who owned twenty houses out in Arizona. He had never actually seen any of them - he just owned them as an investment. Also, since being a landlord was too much hassle and legal liability, he wasn't renting them out. The houses just sat vacant and he intended to make his money on housing prices outpacing inflation. The theory behind the tax is that having large numbers of houses sitting around empty is a poor use of resources. By increasing the property tax on unoccupied houses, the owner is encouraged to rent out the units, increasing the overall housing supply and thereby decreasing rents.

natrius 13y ago
You should introduce that fellow to real estate investment trusts, where he'd be almost guaranteed to make more money than his strategy.
breischl 13y ago
Ah, so a "housing speculator tax" or an "unused residence tax." That makes a lot more sense than a landlord tax. edit: Occurs to me that this would help deal with bank-owned properties that can sometimes sit vacant for quite a while. OTOH, that very thing might make it harder to get a mortgage - lenders would be scared they'd end up owning some unsaleable property in downtown Detroit, and paying elevated taxes on it to boot.
- ChuckFrank 13y ago
  Correct. Vacancies that accrue speculative value, or vacancies that are covered by rental insurance destroy the housing supply chain. Rentals on the other hand are amazing. They are a great way for people to start on their way to home ownership, and they are great for labor mobility. Robust rental markets should be supported by the type of residences allowed by planning - granny units, alley units, secondary units, etc. Plus smaller rental units as well.
numbsafari 13y ago
Such a tax would be especially beneficial in a city like Philadelphia, where such a high proportion of lots are sitting vacant or uninhabitable and the owners are nowhere to be found. It also doesn't help that the city is derelict in its duty to collect existing property taxes, and has been entirely incompetent when it comes to claiming those properties and reselling them.

natrius 13y ago

You should introduce that fellow to real estate investment trusts, where he'd be almost guaranteed to make more money than his strategy.

breischl 13y ago

Ah, so a "housing speculator tax" or an "unused residence tax." That makes a lot more sense than a landlord tax. edit: Occurs to me that this would help deal with bank-owned properties that can sometimes sit vacant for quite a while. OTOH, that very thing might make it harder to get a mortgage - lenders would be scared they'd end up owning some unsaleable property in downtown Detroit, and paying elevated taxes on it to boot.

ChuckFrank 13y ago
Correct. Vacancies that accrue speculative value, or vacancies that are covered by rental insurance destroy the housing supply chain. Rentals on the other hand are amazing. They are a great way for people to start on their way to home ownership, and they are great for labor mobility. Robust rental markets should be supported by the type of residences allowed by planning - granny units, alley units, secondary units, etc. Plus smaller rental units as well.

numbsafari 13y ago

Such a tax would be especially beneficial in a city like Philadelphia, where such a high proportion of lots are sitting vacant or uninhabitable and the owners are nowhere to be found. It also doesn't help that the city is derelict in its duty to collect existing property taxes, and has been entirely incompetent when it comes to claiming those properties and reselling them.